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Former Zillow CEO Lists Home for Eight Million Dollars Over His Company's Estimated Value

Kendall Caputo

For twenty years Kendall was an active successful real estate investor buying, selling and managing real estate for his own privately held company in ...

For twenty years Kendall was an active successful real estate investor buying, selling and managing real estate for his own privately held company in ...

Mar 72 minutes read

On Thursday Spencer Rascoff listed his Brentwood, CA home for $24 Million nearly $8 Million over the Zillow estimated value.

If you look hard enough you can find a disclaimer on the Zillow website they claim that their median error is less than 2% for "on market" homes and 7.5% for "off market" homes. Why is that?

Is it possible that Zillow is factoring in the pricing analysis generated by a professional Realtor into their model? What else would explain why Zillow is so much more accurate after a home goes on the market vs. before?

If your Daytona, Palm Coast, New Smyrna, Edgewater or Port Orange home is worth around $250,000 (the median home value in our communities) the 7.5% error rate that Zillow admits to means they could miss the value of your home an average of $18,750. That's a lot of money! We would call it sloppy pricing.

This is not the first time Rascoff has ignored his own valuation model. In 2016 Rascoff sold a Seattle home for $1.05 million, 40 percent less than the Zestimate of $1.75 shown on its property report a day later.

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